Latest news with #WesternMidstream
Bloomberg
5 days ago
- Business
- Bloomberg
Western Midstream to Buy Aris Water in Permian for $1.5 Billion
Western Midstream Partners LP, the shale pipeline operator, agreed to buy Aris Water Solutions Inc. for about $1.5 billion in cash and stock, expanding its reach into the Permian Basin's booming water disposal business. The deal calls for Aris investors to receive 0.625 common units of Western Midstream with the option to receive $25 per share in cash, a 23% premium over Tuesday's closing price, Western Midstream said Wednesday in a statement. The cash option is subject to possible proration with a maximum cash payout of $415 million, the company said.
Reuters
5 days ago
- Business
- Reuters
Western Midstream to buy Aris Water for $1.5 billion
Aug 6 (Reuters) - Western Midstream Partners (WES.N), opens new tab said on Wednesday it will acquire Aris Water Solutions (ARIS.N), opens new tab in a cash-and-stock deal valued at about $1.5 billion as it aims to diversify operations in the Permian Basin. The U.S. natural gas-focused pipeline operator has been seeking to create a leading water infrastructure platform in the top U.S. oilfield and diversify its customer base across West Texas and southeastern New Mexico. Aris shareholders will receive 0.625 common units of Western Midstream for each Aris share, or $25 per share in cash. The maximum cash consideration for the transaction is $415 million. The deal is expected to close in the fourth quarter of 2025.
Yahoo
24-07-2025
- Business
- Yahoo
Western Midstream (WES) Surpasses Market Returns: Some Facts Worth Knowing
Western Midstream (WES) ended the recent trading session at $40.01, demonstrating a +1.32% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.78%. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 0.61%. The oil and gas transportation and storage company's shares have seen an increase of 3.49% over the last month, surpassing the Oils-Energy sector's loss of 3.19% and falling behind the S&P 500's gain of 5.88%. Market participants will be closely following the financial results of Western Midstream in its upcoming release. The company plans to announce its earnings on August 6, 2025. In that report, analysts expect Western Midstream to post earnings of $0.82 per share. This would mark a year-over-year decline of 15.46%. At the same time, our most recent consensus estimate is projecting a revenue of $941.48 million, reflecting a 3.96% rise from the equivalent quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.33 per share and a revenue of $3.8 billion, representing changes of -17.16% and +5.33%, respectively, from the prior year. Investors should also note any recent changes to analyst estimates for Western Midstream. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.96% lower within the past month. As of now, Western Midstream holds a Zacks Rank of #3 (Hold). Investors should also note Western Midstream's current valuation metrics, including its Forward P/E ratio of 11.86. For comparison, its industry has an average Forward P/E of 20.43, which means Western Midstream is trading at a discount to the group. The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Western Midstream Partners, LP (WES) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
24-06-2025
- Business
- Globe and Mail
Analysts Offer Insights on Energy Companies: Western Midstream Partners (WES), Mach Natural Resources LP (MNR) and California Resources Corp (CRC)
Companies in the Energy sector have received a lot of coverage today as analysts weigh in on Western Midstream Partners (WES – Research Report), Mach Natural Resources LP (MNR – Research Report) and California Resources Corp (CRC – Research Report). Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Western Midstream Partners (WES) Morgan Stanley analyst Robert Kad maintained a Sell rating on Western Midstream Partners today and set a price target of $41.00. The company's shares closed last Monday at $38.88. According to Kad is a 4-star analyst with an average return of 9.6% and a 65.2% success rate. Kad covers the NA sector, focusing on stocks such as Enterprise Products Partners, Plains All American, and Plains GP Holdings. ;'> The word on The Street in general, suggests a Hold analyst consensus rating for Western Midstream Partners with a $40.57 average price target. In a report released today, John Freeman from Raymond James reiterated a Buy rating on Mach Natural Resources LP, with a price target of $21.00. The company's shares closed last Monday at $15.47. According to Freeman is a top 25 analyst with an average return of 42.2% and a 72.5% success rate. Freeman covers the NA sector, focusing on stocks such as Infinity Natural Resources, Inc. Class A, Crescent Energy Company Class A, and National Fuel Gas Company. ;'> Currently, the analyst consensus on Mach Natural Resources LP is a Strong Buy with an average price target of $21.00. California Resources Corp (CRC) In a report released today, Leo Mariani from Roth MKM maintained a Buy rating on California Resources Corp, with a price target of $48.00. The company's shares closed last Monday at $46.98. According to Mariani is a top 100 analyst with an average return of 28.1% and a 63.5% success rate. Mariani covers the NA sector, focusing on stocks such as Occidental Petroleum, Magnolia Oil & Gas, and Comstock Resources. ;'> California Resources Corp has an analyst consensus of Strong Buy, with a price target consensus of $55.80, which is a 16.4% upside from current levels. In a report issued on June 10, TD Cowen also maintained a Buy rating on the stock with a $45.34 price target.
Globe and Mail
10-04-2025
- Business
- Globe and Mail
Seeking High Dividend Yield? Earn 9.6% from This Energy Stock Now.
Investors seeking high and reliable dividend yield amid volatility could consider Western Midstream Partners (WES). Its focus on returning higher cash to its shareholders and an ultra-high yield of 9.6% makes it a compelling income stock to consider now. Western Midstream operates in the midstream segment of the energy industry, a space known for its stable cash flow characteristics. The company's core operations include gathering and transporting oil and gas and the disposal of produced water. It also markets natural gas, NGLs, and condensates under specific processing agreements. This diversified service offering positions WES to generate consistent revenue, even as energy markets fluctuate. WES Is Built for Stability and Growth WES benefits from a large, high-quality asset base spread across multiple productive basins in the U.S. These assets are not only strategically located, but also modernized with advanced processing, measurement, and operating technologies. This sets the company up for long-term operational efficiency and the ability to attract more volume from key upstream producers. A significant strength of Western Midstream is its ability to generate low-volatility cash flows, even amid commodity price fluctuations. WES focuses on fee-based contracts with protective features like minimum-volume commitments and cost-of-service provisions. These mechanisms ensure the company continues to bring in steady revenue, which helps support its generous payouts to investors. As of year-end 2024, WES had 95% of its wellhead natural gas and 100% of its crude oil and produced water throughput, covered by these fee-based agreements. That means most of its revenue isn't directly exposed to fluctuating commodity prices. Western Midstream's long-standing partnership with Occidental Petroleum (OXY) is another positive. This relationship aligns WES with a major upstream player and provides capital-efficient growth opportunities tied to Occidental's development plans. It's a unique synergy that adds stability and upside potential to WES's business model. Financially, Western Midstream is well-equipped to handle both organic expansion and acquisitions. Its robust operating cash flow, ample borrowing capacity, and access to capital markets provide the liquidity needed to seize strategic growth opportunities. The company's long-term debt profile and solid relationships in the financial community add to its overall resilience. Thanks to strong financial performance and a healthy underlying business, WES has consistently increased its base distribution over the years. Since 2021, the company's annual base dividend per share has jumped from $1.27 to $3.20 in 2024 and now $3.50 — an impressive rise reflecting operational strength and growing free cash flow. Looking ahead, WES aims for continued distribution growth in the mid-to-low single digits each year. The Bottom Line on This Dividend Stock Western Midstream Partners' fee-based operating model has built a strong foundation for stability and growth. This approach enables it to deliver more predictable cash flows and financial resilience even during challenging market conditions. The company is expanding its footprint through organic growth and strategic acquisitions. By continually investing in economically viable development and expansion projects, it efficiently meets rising demand for its services while also creating opportunities for long-term growth. Mergers and acquisitions significantly influence the company's broader growth agenda. Western Midstream strategically targets new assets, business lines, and geographies to add to its portfolio. When combined with steady organic growth, these accretive acquisitions will support the company's goal of maintaining a healthy return and driving sustained distribution growth over time. Further, Western Midstream's focus on controlling operating and administrative costs in check bodes well for future growth. Its efforts to enhance productivity will help generate meaningful cost savings and support overall profitability. Despite these strengths, the stock carries a 'Hold' consensus rating from Wall Street analysts, mainly due to macroeconomic risks. The ongoing trade tensions could push operating and capital costs higher for the company, which may pressure its margins and distributions. Still, Western Midstream presents a compelling case for income-focused investors. Its forward yield of 9.6% stands out, especially given the company's stable cash flows and commitment to returning more cash to its shareholders.
